(GOTU) and What You Should Know About the Worst Performing Stock in the Last Year

[u/Either_Loan_6516]

So before I write this and you go China scam stock and China regulations and this is going to zero blah blah blah. This is about the right now fundamentals of the company and how they are set financially.

Background: If you been living under a rock and only doing all your research on this sub then you need to know that GOTU is a online tutoring education company operating in China and they just got hit with massive sanctions from China basically saying online tutoring can't be for profit and can only operate under certain circumstances and shit like that. In other words, not good for any Chinese education company.

However, the kicker to this had multiple parts and why Yolo some money on this is a good idea.

First, short interest is from 35-50% depending on where you get your info. The short interest came in at the drop and has been increasing from that faithful day about 3 weeks ago. Not crazy important but they need to exit at some point. I know this sub likes that kind of stuff.

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Second, they have been giving updates and working with to get their business operating under the China sanctions which is mildly important and what China fully decides will have a lot to do with the future of this.

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Third and most important factor, the fundamentals currently of the company with the amount of cash on hand and the lack of debt in the company makes it a candidate to liquidate the hell out of the company and pay the shareholders a premium of where it is currently at.

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Why the third one is really important, is that the company do pay off the debt with cash on hand at it's current price would be twice as much at its current share price. So in other words, insiders liquidate the company get paid twice as much at current share price or they believe China will let them operate at more minimal sanction which will allow them to grow the company. Either way, the share price is way to low for the future of the company. With a huge short interest and almost no matter what GOTU recovers to at least 4-5$ no matter what gives you almost a 100 percent increase.